Argentine province suspends mining project from Canadian company Osisko
A court from the Argentine province of La Rioja ruled in favour of suspending the mining project led by Canadian company Osisko in Famatina until the Glaciers Law is applied in the area.
Judge Daniel Flores, in the Chilecito department, ruled in favour of a cautionary measure filed by the Famatina city hall so the agreement between the mining company and the provincial government signed in August 21st, 2011 is temporarily suspended.
The mayor of Famatina, Ismael Bordagaray, called it a “historic ruling.”
“The Chilecito court has decided to rule in our favour,” he said happily, and considered this the town's first achievement in the legal battle that has most of its population at odds with the provincial government.
Bordagaray explained that among the various suggestions in the ruling, one urges the company “not to pursue any further exploration in the explosives area until the Glaciers Law is applied in the region.”
The mayor also said he was “satisfied” by what he called “the department’s independence from the provincial government.”
“To us this is a fundamental issue. It's our first achievement in a legal battle and it proves we’re right. The Chilecito court is the one that understands us the most, the one that remains committed, knows about this whole issue and remains independent,” he explained.
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Luckily the problem is small, i.e. that the galciers needs to be identified and protected (similar to what has already stipulated in the mining concession agrremtn for Pasca-Lama. Once this is done we will hopefully see some much needed investment in La Rioja province and the clean up of historical illegal mining in the area which has left a huge polution leagacy (the mine is located near a river called the Yello River, Il let you guess why it is called that.)
- Osisko Mining Corporation press release, 30 January 2012
www.osisko.com/en/press/2012/01/30/665/osisko-updates-status-of-famatina-exploration-project.html
Agreed, however this makes it even more dangerous for the officals to be taking a harder line. the less money Osisko have invested the more likely they would be to pull the plug on the operation and walk away.
But good news for the rule of law, which in othercontexts you guys are always saying helps investment =)
“the mine is located near a river called the Yello River, Il let you guess why it is called that”
Chinese style growth rates? =)
#4 What nonsense. As if local people wouldn't have their own concerns?
Or just how is megamineria defined, say as opposite to micromineria?
From Perú, the experience of artisanal mining - micromineria - is known as having very poor safety and environmental impacts compared to the large, corporative mines, but the artisanals tend to work with the Andean village social consensus - maybe one family works one tiny mining effort. If all the male members of the family die in a mining accident, or if the mine drains acidic waste down a hillside, the impact is mostly outside of media completely - nobody knows except the family and the few villagers downslope from the tiny mine.
If the Osisko project, as well as the broader rejection of mining initiatives in Bolivia and Perú reflect a trend towards wholesale rejection of both underground and open cast/open pit mining, the governments will be unhappy that they don't get so much revenues to buy more Russian weapons. And if the local community prefers a hard life cultivating potatoes, thats their choice.
It just increases the value of mining in places where it is wanted - and those places appear to include some in Argentina, Chile and elsewhere. As well as in Canada...
Reference:
Argentine glaciers scupper Osisko’s Famatina project:
www.mining.com/2012/07/19/argentina-suspends-osiskos-famatina-project-the-same-one-where-barrick-came-unstuck/
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